Joint Ventures

There are a variety of ways that businesses or individuals can join together in strategic partnerships to more efficiently and effectively accomplish a goal. One of the most common ways to do this is a joint venture between two parties. Technically speaking, the term joint venture refers to a general arrangement and does not specify exactly what form the arrangement takes.

A joint venture is a merging of two companies or individuals to perform a particular economic activity. This venture may become a corporation, partnership, limited liability corporation, or other legal form of business. The tax classification will depend on what is most advantageous and relevant for the project.

Some joint ventures are designed with one specific deal or project in mind, and are then dissolved. Others may be indefinite and can last for quite a long time. The length of the partnership will depend on how long the strategic advantage gained by the joint venture can be maintained.

A joint venture is characterized by both sides contributing assets and both sides sharing profits and losses. This sharing of assets and profits is the reason why a new company is formed, as opposed to a simple strategic arrangement that would be a much looser agreement.

Contact Us

If you have any questions or concerns about the legal ramifications of a joint venture, or any other legal issues regarding your business, it is important to speak with an experienced legal representative. Contact the Minneapolis business attorneys of Skjold ▪ Barthel, P.A. by calling 612-746-2560.